SCR1040 is a resolution that was originally assigned to the Education Committee and has since been amended to focus on FICO-related matters. The resolution, as passed by the Senate, initially required the State Treasurer and the Arizona State Land Department to transfer funds from the Permanent State School Fund to provide guaranteed financing for common schools' capital facilities starting in FY 2026. However, the House of Representatives adopted a strike-everything amendment that changed the focus of the resolution.

The amended resolution, now subject to voter approval, seeks to constitutionally establish minimum hourly wage requirements for tipped employees. The Fair Wages and Healthy Families Act, passed by Arizona voters in 2016, already requires employers to pay employees at least the statutory minimum wage, which is adjusted annually. The proposed amendment would allow employers to pay tipped employees up to 25 percent less than the statutory minimum wage, provided that when combined with tips, the employee's earnings meet or exceed the minimum wage plus an additional $2 per hour. This compliance is determined by averaging tips over the employer's payroll period or another compliant period. The resolution, now known as the Tipped Workers Protection Act, will be submitted to voters at the next general election and will take effect upon voter approval and proclamation by the Governor. There is no anticipated fiscal impact to the state General Fund from this legislation.

Statutes affected:
Introduced Version: 37-521
Senate Engrossed Version: 37-521